Correlation Between BANK MANDIRI and Apple
Can any of the company-specific risk be diversified away by investing in both BANK MANDIRI and Apple at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BANK MANDIRI and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK MANDIRI and Apple Inc, you can compare the effects of market volatilities on BANK MANDIRI and Apple and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BANK MANDIRI with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Apple.
Diversification Opportunities for BANK MANDIRI and Apple
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANK and Apple is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and BANK MANDIRI is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BANK MANDIRI are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Apple go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Apple
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Apple. In addition to that, BANK MANDIRI is 11.62 times more volatile than Apple Inc. It trades about -0.04 of its total potential returns per unit of risk. Apple Inc is currently generating about -0.06 per unit of volatility. If you would invest 23,775 in Apple Inc on October 12, 2024 and sell it today you would lose (210.00) from holding Apple Inc or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Apple Inc
Performance |
| Timeline |
| BANK MANDIRI |
| Apple Inc |
BANK MANDIRI and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Apple
The main advantage of trading using opposite BANK MANDIRI and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI position performs unexpectedly, Apple can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Apple will offset losses from the drop in Apple's long position.| BANK MANDIRI vs. CAREER EDUCATION | BANK MANDIRI vs. DeVry Education Group | BANK MANDIRI vs. American Public Education | BANK MANDIRI vs. Adtalem Global Education |
| Apple vs. Silicon Motion Technology | Apple vs. Easy Software AG | Apple vs. INDO RAMA SYNTHETIC | Apple vs. SCOTT TECHNOLOGY |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |